Leaving Employment Prior to Retirement Eligibility?
If you leave your job and terminate employment with a participating employer but are vested in the system (currently 5 years of contributing service), you may begin collecting your pension benefit when you meet your retirement eligibility criteria — as long as you do not withdraw your contributions.
In some cases, your eligibility date may be adjusted if you leave employment prior to reaching your full retirement date. However, your benefit will be the same as it was the day you terminated employment. There are options to receive your benefit prior to reaching your full eligibility date but those options require a reduction of your benefit (see the discussion of Transition Rules in the sections above).
It is important to know that once you leave active employment, ERSRI will not automatically begin sending your pension benefit when you reach you full retirement eligibility date. It is your responsibility to notify ERSRI when you become eligible and to fill out a retirement application approximately three to six months before your eligible retirement date.
If you are not vested in the system (less than 5 years of contributing service) you can take a refund of your pension contributions without interest. You can roll this money over into a qualified retirement account or take the refund as cash. You should be aware that if you take a refund of your contributions as cash you will be subject to mandatory tax withholding and may incur additional tax penalties for early withdrawal. Always consult a tax professional when considering this option.
